China’s legislature has released a plan to attract foreign investment, aiming to improve the business environment and expand market access for foreign companies. The plan includes measures to ease administrative burdens and level the playing field for foreign companies, with a focus on key industries like manufacturing and telecommunications. Pilot projects in FTZs will relax restrictions on foreign investment in technological innovation.

China’s legislature has released a new plan to attract foreign investment after a year of falling foreign direct investment inflows. The plan, the latest in a series of efforts to boost foreign capital in China, proposes measures to improve the business environment, ease administrative burdens, expand market access in key industries, and even the playing field for foreign companies. We outline the policy proposals that could benefit foreign companies in the coming years.

The State Council has released a 24-point plan to boost foreign capital in China. The plan, titled the Action Plan to Solidly Promote High-Level Opening Up and Make Greater Efforts to Attract and Utilize Foreign Investment (the “Action Plan”), outlines various measures to attract foreign investment, including expanding market access in key industries, ensuring equal participation of foreign companies in government bidding, and facilitating cross-border data flows.

China has been striving to encourage and support foreign investment in recent years. Efforts ramped up in 2023 when levels of foreign direct investment (FDI) inflows to China fell by 8 percent year-on-year. In July 2023, the State Council issued a similar set of measures that aimed to improve the business environment for foreign companies, with suggestions including measures to strengthen intellectual property rights and ease regulations on cross-border data flows.

In this article, we outline some of the key measures proposed by the State Council to attract foreign investment in 2024.

One of the main measures in the Action Plan is to expand market access for foreign companies by “reasonably reducing” the negative list for foreign investment access. This document lists the industries and sectors that foreign investors are prohibited from participating in, and thus by shortening it, more sectors will become accessible to foreign investors. It was last updated at the end of 2021.

The Action Plan reiterates the directives mentioned in the GWR, stating that the government remove restrictions on foreign investment in the manufacturing sector, and continue to promote the opening up of telecommunications, medical, and other fields.

Meanwhile, the Action Plan also calls for carrying out pilot projects to relax foreign investment access in the field of scientific and technological innovation. This will be carried out in pilot free trade zones (FTZ) such as Beijing, Shanghai, and Guangdong, which will be permitted to select a number of qualified foreign-invested enterprises (FIEs) to expand access in areas such as the development and application of genetic diagnosis and treatment technologies.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

In a possible sign that often frosty relations are warming, China’s Foreign Minister Wang Yi met counterpart Penny Wong in the Australian capital Canberra on Wednesday. It’s the highest level meeting between the two countries since 2017.

Wong pushed for the removal of tariffs on wine, rock lobster and meat products imposed in 2020, but didn’t shy away from raising rights concerns.

“As you would expect, I raised Australia’s concerns about human rights including in Xinjiang, Tibet, and Hong Kong,”  Wong told a post-meeting news conference. 

“I expressed our serious concern about unsafe conduct at sea, our desire for peace and stability across the Taiwan Strait and in our region.”

Wong also raised the case of Yang Hengjun, the Australian writer who was convicted of spying and given a suspended death sentence in February.

“Australians found the sentence imposed shocking,” Wong told reporters.

“We will not walk away from our advocacy for Dr Yang Jun.”

The meeting paves the way for a visit to Australia by Chinese Premier Li Qiang, planned for the middle of this year. Both foreign ministers said the plans are “on track.”

Wang earlier visited New Zealand where he met his counterpart Winston Peters and Prime Minister Christopher Luxon.

Edited by Taejun Kang. 

Read the rest of this article here >>> China’s top diplomat visits Australia, pushes stable relations

China’s Minister of Foreign Affairs, Wang Yi, will visit New Zealand and Australia from March 17 to March 21, 2024, following invitations from both countries. The visit will include discussions on various bilateral and regional issues, including trade relations and scientific cooperation.

UPDATE (March 15, 2024): China’s Minister of Foreign Affairs, Wang Yi, is set to embark on a key diplomatic mission to New Zealand and Australia from March 17 to March 21, 2024. This visit comes following invitations from New Zealand’s Deputy Prime Minister and Foreign Minister, Peters, and Australian Foreign Minister Marise Payne. A pivotal aspect of Wang Yi’s agenda will be his attendance at the seventh round of China-Australia Diplomatic and Strategic Dialogue (hereinafter, “the Dialogue”), scheduled during his stay in Australia. The Dialogue is anticipated to tackle various bilateral and regional issues.

As reported by SCMP on February 29, 2024, Australia has extended an official invitation to China’s foreign minister, Wang Yi, marking a significant development in the ongoing dialogue between the two nations.

Against this backdrop, the invitation reflects a concerted effort to address a range of contentious issues that have strained diplomatic ties in recent years.

The upcoming discussions between China and Australia will center around critical issues that have the potential to shape the trajectory of their bilateral relations. The negotiation dynamics between these two countries are marked by a nuanced interplay of interests, priorities, and strategic imperatives.

Australia’s Department of Foreign Affairs and Trade (DFAT) is actively advocating for the lifting of sanctions on Australian wine and lobsters, which have strained trade relations between the two countries. Seeking sanctions relief underscores Australia’s efforts to alleviate economic pressures and facilitate bilateral trade and investment.

Concurrently, China is pressing Australia to commit to a new Science and Technology Agreement, aiming to foster collaborative efforts in areas of mutual interest. Despite challenges posed by the broader geopolitical context, China’s emphasis on scientific and technological cooperation reflects its acknowledgment of the benefits of engagement and partnership in addressing global challenges and promoting sustainable development.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.